Munjal Auto Industries Limited (MUNJALAU) AI Stock Analysis

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Munjal Auto Industries Limited

(NSE:MUNJALAU)

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Rating:49Neutral

Price Target:INR 94.00▼(-12.76% Downside)

Action:reiterated

Date:10/07/26

Moderate financial performance due to cash flow volatility and higher leverage is the primary factor, with mixed technical signals showing short-term weakness partially offset by fair valuation.

Positive Factors

Revenue RecoveryThe return to revenue growth indicates improving demand for the company’s automotive components after a weaker period. If this recovery persists, higher production volumes can support better fixed-cost absorption and provide a foundation for rebuilding earnings over the next several quarters.

Negative Factors

Negative Free Cash FlowTwo consecutive years of negative free cash flow weaken the company’s ability to fund reinvestment and obligations from internally generated cash. This can increase reliance on external funding and reduce strategic flexibility, particularly while leverage is already elevated.

Munjal Auto Industries Limited (MUNJALAU) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 10.74B
Dividend Yield: 0.93%
Average Volume (3M): 35.44K
Price to Earnings (P/E): 21.4
Beta (1Y): 1.16
Revenue Growth: 22.26%
EPS Growth: 23.98%
Country: India
Employees: 861
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Munjal Auto Industries Limited Business Overview & Revenue Model

Company Description

Founded in 1985 and headquartered in Gurugram, India, Munjal Auto Industries Limited specializes in the production and distribution of a wide array of motor vehicle components and accessories throughout India. The company operates primarily through t...

Munjal Auto Industries Limited Financial Statement Overview

Summary

Moderate revenue recovery and positive net income offset by low margins, rising debt-to-equity to 0.95, and volatile negative free cash flows in recent years.

Income Statement

55Neutral

Balance Sheet

45Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	25.03B	22.95B	20.66B	18.82B	19.84B	19.16B
Gross Profit	3.83B	3.56B	3.43B	1.62B	4.78B	2.66B
EBITDA	1.54B	1.67B	1.36B	1.40B	1.45B	879.22M
Net Income	502.11M	402.01M	363.91M	384.90M	561.35M	267.94M
Balance Sheet
Total Assets	0	14.55B	12.37B	12.18B	12.76B	9.61B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.39B	1.42B	1.76B	1.13B	1.20B
Total Debt	0	4.23B	3.50B	2.76B	2.82B	1.16B
Total Liabilities	-4.67B	9.89B	8.09B	8.07B	8.81B	6.09B
Stockholders Equity	4.67B	4.48B	4.16B	4.01B	3.84B	3.37B
Cash Flow
Free Cash Flow	-564.81M	-396.20M	-542.34M	861.40M	51.97M	1.20B
Operating Cash Flow	-179.57M	337.10M	118.49M	1.27B	345.81M	1.37B
Investing Cash Flow	-78.58M	-674.24M	-116.33M	-772.52M	371.31M	-992.65M
Financing Cash Flow	199.25M	390.14M	6.97M	-525.50M	-648.93M	-503.47M

Munjal Auto Industries Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price107.75

Price Trends

50DMA104.42Positive

100DMA104.46Positive

200DMA92.86Positive

Market Momentum

MACD0.63Negative

RSI62.28Neutral

STOCH82.73Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUNJALAU, the sentiment is Positive. The current price of 107.75 is above the 20-day moving average (MA) of 100.19, above the 50-day MA of 104.42, and above the 200-day MA of 92.86, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 62.28 is Neutral, neither overbought nor oversold. The STOCH value of 82.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MUNJALAU.

Munjal Auto Industries Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:MUNJALAU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:JAMNAAUTO	72Outperform	INR 58.86B	25.41	―	1.01%	15.89%	29.90%
IN:BHARATSE	56Neutral	INR 13.28B	25.65	―	0.71%	48.41%	35.50%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RICOAUTO	49Neutral	INR 13.35B	-102.64	―	0.54%	21.35%	-4.52%
IN:MUNJALAU	49Neutral	INR 10.57B	21.40	―	0.93%	22.26%	23.98%
IN:MUNJALSHOW	48Neutral	INR 5.15B	21.50	―	3.36%	12.33%	-1.65%
IN:SETCO	45Neutral	INR 2.38B	0.97	―	72.83%	-6.53%	―

* General Sector Average

Performance Comparison

IN:MUNJALAU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:MUNJALAU	Munjal Auto Industries Limited	107.75	19.17	21.64%
IN:JAMNAAUTO	Jamna Auto Industries Limited	148.85	40.87	37.85%
IN:MUNJALSHOW	Munjal Showa Limited	134.10	7.96	6.31%
IN:RICOAUTO	Rico Auto Industries Limited	102.34	-7.65	-6.96%
IN:SETCO	Setco Automotive Limited	17.85	8.67	94.51%
IN:BHARATSE	Bharat Seats Limited	210.45	28.92	15.93%

Munjal Auto Industries Limited Corporate Events

Munjal Auto Holds 41st AGM, Confirms Clean Audit and E-Voting Disclosure Plan

Aug 31, 2026

Munjal Auto Industries Limited held its 41st Annual General Meeting on August 31, 2026, via video conferencing and other audio-visual means, in line with circulars from the Ministry of Corporate Affairs and SEBI. The meeting was chaired by Chairman a...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 07, 2026

Munjal Auto Industries Limited AI Stock Analysis